Market makers' provision of liquidity is a complex system that involves managing an aggregate of securities and derivatives that are readily available to be cashed on spot. Market makers use different market approaches to manage their inventory, such as bid-ask spread, order flow, and algorithmic trading strategies. These approaches allow market makers to make a...
Market makers' provision of liquidity is a complex system that involves managing an aggregate of securities and derivatives that are readily available to be cashed on spot. Market makers use different market approaches to manage their inventory, such as bid-ask spread, order flow, and algorithmic trading strategies. These approaches allow market makers to make a...
An analysis drawn from a new confluence I am studying.
It's possible that the majority of the actual inventory of a market maker contains contracts that are long-dated. Long-dated contracts are those with a longer maturity date, usually more than a year. These contracts can include stocks, bonds, options, futures, and other financial instruments. Long-dated contracts can be beneficial for market makers because they...
Inventory management for market makers is generally relative to the amount of contracts that can be liquidated for cash on spot. Market makers need to ensure that they have enough cash available to meet their obligations, including the potential need to buy or sell securities or derivatives to provide liquidity to the market. When a market maker holds a large...
A period of low spread and low volume can indicate a lack of liquidity in the market. This can be caused by a variety of factors, such as a lack of investor interest in the security or derivative, or a lack of market participants willing to trade at the current bid and ask prices. In this case, a market maker may choose to adjust its strategy to manage the risk...
Here's A brief map of nasdaq from my perspective. A key point are the FVG and the Consequential Encouragement Priceline and how price books orders around this range.
A few weeks ago, after reanalyzing the COT positioning. I saw that the dealer was acummulating short positions leading into the new year after taking liquidity from below multi year lows. We are still early in the new year. This could be a rebalancing or higher time frame such as a 3 month and above, bottom. Against the COT, I am long until the 1.31 mark.
What can we expect from the upcoming news events? Im still very bullish on the dollar. I anticipate short selling well into the first 3 months of the year. Mitigating the massive amount of hodling, which in turn clears up books to bring in fresh interest. If we get below the 10K mark, I can make the expectation that a bottom may form after 2025. This is an...
Here is my analysis going into the week. My entries are on the chart. Feel free to leave comments.
My analysis involves a blend of several concepts but they are all price action based. This week I am expecting more bullish pressure. I am no longer a seller at this point and may not be one for the next couple of seasons as we move into the election cycle, and I feel this may bring a risk on environment as the US moves into it's election phase. But for the...
Here is my analysis for GBPUSD I have my entries via the chart. I think it's safe to go long from these price points, but if I see a closure below these entries than i will remain short in my overall bias.
My current sell bias on NQ Have sellers stepped back in this week? Im always sure to keep a tight stop profile, because more or less if im wrong, then im wrong. But im still short, we just made a new qtrly high. Let's see how this plays out. We may see high price movements into the 2nd Qtr Supply, which is a maybe, but if so then longs could be considered in...
The Reading that Im interpretting is that institutions are rebalancing ahead of high impact news to bring counterparty interest into the market as for the seasonal session we are rolling into a new one. I wont rule out that usd pairs may continue to rise over the next few weeks and the USD unwinds through what may be just profit taking measures. But this...
sell 1.13913 sl 1.14072 sell limit @issielliott Have a blessed trading day.
What A Friday, Sellers really got pushed out bad today, Maybe because this week ended within internalizing intentions. But here is a limit order I'll be paying attention next week. I am still very bearish , and maybe for the long term ahead. Here we have a open sell order with no recent retest, resting at the the top of the 3rd wave which was heavily extended...
Sell Limit Order: Sell 0.6462 Stop Loss: 0.6482 Take Profit: 0.6170 RR: 1 to 15.4
Here are my signals for today, it seems seller momentum has picked up and I am expecting a weekly close lower.